The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Allegiant Travel met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped.
Margins dropped across the board.
Allegiant Travel reported revenue of $193.9 million. The 13 analysts polled by S&P Capital IQ expected net sales of $192.5 million. Sales were 20% higher than the prior-year quarter's $162.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.56. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.56 per share. GAAP EPS of $0.56 for Q4 were 13% lower than the prior-year quarter's $0.64 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 22.2%, 360 basis points worse than the prior-year quarter. Operating margin was 10.4%, 250 basis points worse than the prior-year quarter. Net margin was 5.6%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $229.5 million. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $938.8 million. The average EPS estimate is $3.87.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 164 members rating the stock outperform, and 41 members rating it underperform. Among CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give Allegiant Travel a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Allegiant Travel is outperform, with an average price target of $58.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Allegiant Travel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.